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View Full Version : Boss is paying cash, legal??


monty299
05-15-2006, 09:24 PM
I have worked at the same business for 10 years. I always work two jobs. I often work part-time and then up to full time at a restaurant due to a teaching career. This particular restaurant employees about 15. The business takes in over 600,000 a year in sales. I am upset because employees are working there and getting paid cash. These people have only worked there for a year. I have been there 10 years and I am ate up in taxes, I figure these people who have been hired in are really clearing more than I am because they get paid cash. To beat it all off I have to pay in taxes at the end of the year while they are all on vacation baking in the sun! Is this legal??? I know it's not fair! FED UP IN KY!

Pattymd
05-16-2006, 03:20 AM
It is not illegal to pay in cash as long as all other laws are being complied with. Are wage and hour laws being complied with? Taxes being withheld? Pay voucher being given?

monty299
05-16-2006, 08:44 AM
He doesn't take taxes out on them-they are getting paid cash by the hour.

Pattymd
05-16-2006, 10:00 AM
Then the company is in violation of state and federal wage and hour laws, tax avoidance (or fraud, if you want to get technical), state unemployment insurance laws, probably worker's comp laws (I'm assuming he's not covering these workers for WC), and who knows what all else.

If you choose to report the employer to any of these regulatory agencies you may do so.

monty299
05-16-2006, 06:53 PM
Who would I call to file a complaint?? THANKS

Pattymd
05-17-2006, 04:53 AM
IRS, state Dept. of Labor, state Office of Employment and Training, federal Dept. of Labor, state Worker's Compensation Commission (not sure what its exact name is).

That enough for ya? :D

bowlmeover
06-12-2006, 10:16 AM
There is the possibility that he could be paying these people as 1099 employees, commonly refered to as casual labor. In those instances hew could pay cash, not take out taxes and give the employee a 1099 at the end of the year and make them pay the taxes at the end of the year. Also, could it be a situation of these employees are family members? There are different taxation laws regarding sole proprietors hiring family members. You can check the irs.gov web site to research this. Hope this helps!!

Pattymd
06-12-2006, 10:34 AM
"1099 employees" is a contradiction in terms. You are either an employee , in which case you get a W-2 form at year-end and taxes must be withheld from your pay, or you are an independent contractor , in which case you get a 1099-MISC at year-end and you are responsible for paying your own taxes (generally speaking, quarterly).

Employees are employees; that's the default. "Casual laborers" are not automatically independent contractors and the terms are not synonymous.

Paying in cash is not illegal, in and of itself. Paying an employee, either with cash or a check, without deducting taxes is illegal.

monty299
06-12-2006, 06:11 PM
The people working for him who is recieving cash are not family members! They draw checks because "they can't work"!!! They do not pay taxes at the end of the year, however I do pay in taxes at the end of the year so they can recieve that federal check every month not including all the money they get for working and getting cash from him! FED UP IN KY!

bowlmeover
06-12-2006, 08:22 PM
I feel your pain on that one, Monty. I have cousins that live in the rural parts of Kentucky. (keep in mind that they are trained as a licensed cosmetologist and a RN!!) I went to visit my grandmother 10 or so years ago and had just bought a brand new Toyota Celica GTS. I came around a corner to hear them saying 'can you believe her showing off her money like that bringing that fancy new sportscar here?' I promptly reminded them that the fact that I can afford that sportscar is why they have food in their mouths. With their dumbfounded looks, I went on to explain that to afford the car, I must work. When I work, I give money to the Feds and the State via taxes. The Feds and the State in turn take that money and give it to them in the form of vouchers and food stamps. They were peeved but they knew I was right. I believe that what goes around comes around. Just make sure that you do what you have to do, but remember, the more you stir sh*t, the more it stinks. Good luck to you if you decide to report him to the various agencies.

monty299
06-13-2006, 08:14 PM
I Am Just Furious To The Thought That I Have To Keep These People Up By Paying Taxes! I Have To Pay In Taxes At The End Of The Yr. And That's Not Right. I Work Hard For What I Make And They Come In And Basically Make More Because They Don't Have All The Taxes Taken Out Like I Do!!! It Does Get Old-quick!

Pattymd
06-14-2006, 05:05 AM
Please don't capitalize every word; it makes your post very hard to read.

These people still have to "pay taxes", because they still have to file a return. Is it fair or legal? Neither. But, it isn't really any of your concern, UNLESS you want to report the employer to the DOL, IRS, etc.

monty299
07-09-2006, 07:09 PM
I feel like it is a concern for all of us people out there working our asses off and paying these ridiculous taxes. When someone comes in and is getting paid cash they are clearing more than those who have worked for years and years at a business and thats just not right!

Pattymd
07-10-2006, 06:11 AM
Then, report the employer if you want to. I don't know what else you want us to say.

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